Is MTUM a good ETF?
MTUM is the BetaShares Australian Momentum ETF from BetaShares. It tracks the Solactive Australia Momentum Select Index. We classify it under AU, Factor, and Momentum. With about $242 million in assets it is a solidly established fund. Listed on the ASX since 2024-07-22 (about 2 years ago).
On a total-return basis, MTUM has delivered -5.14% a year over 1 year (ranked 280th of 308 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.35% is reasonable. For comparison, similar ETFs average around 0.34%. If cost is your priority, IOZ (0.05%) cover similar ground for less. It pays a moderate 2.26% yield.
Portfolio turnover is very high at about 60% a year — the fund effectively rebuilds its portfolio each year, which realises capital gains aggressively and can create a meaningful tax drag, especially for higher earners holding it outside super.
Strengths
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
Things to watch
- Pricier than similar ETFs, which average around 0.34%.
- Cheaper alternatives exist: IOZ.
- High portfolio turnover (60% a year) means frequent trading that realises capital gains, adding tax drag — less efficient than a low-turnover index fund.
Good to know
- Distributions are 75% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What MTUM's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
Tilts toward academically-backed drivers of return — value, quality, momentum, size or low volatility — aiming to beat plain market-cap weighting over a full cycle.
- Market regime
- Any single factor can underperform the broad market for years before rewarding patient holders. Multi-factor funds smooth this out somewhat.
- In a portfolio
- A long-term tilt that demands discipline: the edge only shows up if you hold through the inevitable lean stretches.
Buys what has recently been rising on the theory that trends persist. A factor strategy with historically strong long-run returns.
- Market regime
- Outperforms in steady, trending markets but is prone to sharp 'momentum crashes' at sudden turning points and reversals. Higher turnover also means more taxable capital gains.
- In a portfolio
- A factor tilt or satellite, not a set-and-forget core. Expect periods of painful underperformance around market inflection points.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.